Introduction
The introduction of electronic supply chain management corresponds to modern trends in business development and information innovations allowing companies to gain new competitive advantages. The Internet and web technologies are crucial in establishing integration in supply chains. The latest technological developments in information systems and information technology have the potential to assist in the implementation of both data integration and logistics inclusion in general. This increases the supply chain’s interaction, cooperation, and coordination level. Advantages of utilizing technologies: the transparency of the delivery process increases; forecasting and planning management is carried out more productively; the inventory process is optimized; the necessary information about the company is distributed over the network; collaborative relationships between various areas are improved and expanded; efficiency in production workshops and the quality of the final product increases. Modernity can be called the “era of digitalization,” based on the “three pillars” – flexibility, transparency, and automated activities.
Types of Technological Solutions
In order to create supply chain integration, modern technologies are essential. The deployment of information integration and logistics integration in general may benefit from the most recent advancements in information systems and technology. Digital transformation in the supply chain allows companies to achieve and exceed the benchmarks of sustainable development while at the same time introducing innovations and developing their business (Bechtsis et al., 2022).
Artificial intelligence. AI technologies make it possible to analyze disparate data sets across the supply chain.
Machine learning. As an applied aspect of AI, machine learning uses big data to help systems and connected devices adapt in real-time â to identify patterns, learn from experience, and automate flexible and operational workflows.
Robots and automated devices. Electronic drones and robots for inventory management are examples of automated machines that can be optimized using intelligent automation mechanisms to improve workflow efficiency, optimize energy consumption and save fossil fuels in the logistics network.
Additive manufacturing. Also known as 3D printing, additive manufacturing allows companies to maintain virtual inventory and produce products on demand (Hussain et al., 2021).
Industrial Internet of Things (IIoT). When connected devices and machines in a company are equipped with unique identifiers and the ability to send and receive digital data, they become part of the IIoT network (Hussain et al., 2021).
Blockchain. In eco-friendly supply chains, blockchain is beneficial due to its ability to act as a single source of reliable information.
Sensors. When partners and suppliers necessarily equip products with sensors, unprecedented transparency is achieved, especially in regions previously challenging to control reliably.
Modern databases and ERP. Technologies and mechanical components of a sustainable supply chain depend on predictive and advanced analytics and obtaining real-time information through modern centralized business systems.
Problems
There are suggestions that the “human dimension,” ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that are still underrepresented on the research agenda. Against the digitalization of processes, social, environmental, and ethical problems were identified. The social question is whether using artificial intelligence and other automatic methods excludes the human factor from the operation or requires additional training. From an environmental point of view, attention to carbon dioxide emissions, compliance with ethical standards, and even the exclusion of environmentally unscrupulous contractors from the supply chain is growing. There is more and more referred in the media that the business goal is moving away from profit maximization to the concept of social responsibility. Today’s supply chains are not only an effective means of ensuring business continuity but have also become a bulwark of ethical standards. It is no longer enough to know what direct suppliers are doing. Companies need to understand each supplier’s ethical and environmental practices associated with their supply chain. Often, the introduction of technologies has a long payback period and does not justify itself. Besides, it requires specific work skills from personnel and maintenance (Kouhizadeh et al., 2021).
Solutions
Companies should take the following steps to eliminate these problems from their supply chain. Reduce waste by simplifying supply chain processes. Good analytics and reporting combined with machine learning enable continuous improvement of operations throughout the supply chain. Every change that reduces waste speeds up delivery or improves quality leads to a gradual increase in sustainability (Jermsittiparsert et al., 2019). Ensure the ethical use of sources and implement transparency. Supply chain managers must understand how suppliers extract or produce raw materials to ensure they comply with sustainability standards. Blockchain technology is a helpful way to collect and verify vendor search methods. Internet of Things (IoT) devices can monitor and report working conditions and environmental factors. It minimizes overproduction through efficient supply and demand planning (Villena and Gioia 2020). The mismatch between supply and demand leads to too much or too little production of raw materials, production of goods, and distribution of products. This creates alterations and waste. Artificial intelligence, machine learning, and predictive analytics can predict likely demand and provide more efficient supply and production processes.
Conclusion
A forward-looking supply chain strategy combined with the right technological solutions will help organizations build more sustainable, responsible, and ethical supply chains (Villena et al., 2021). And during all these procedures, human influence will always be necessary since all these programs and control over them cannot exist separately from a person. Therefore, if some digitalization methods lead to the unnecessary presence of a person or the reduction of jobs, then these employees can be retrained to monitor the operation of systems.
Reference List
Bechtsis, D., Tsolakis, N., Iakovou, E., & Vlachos, D. (2022) âData-driven secure, resilient and sustainable supply chains: gaps, opportunities, and a new generalised data sharing and data monetisation frameworkâ, International Journal of Production Research, 60(14), 4397-4417.
Hussain, M., Javed, W., Hakeem, O., Yousafzai, A., et al. (2021) âBlockchain-Based IoT Devices in Supply Chain Management: A Systematic Literature Reviewâ, Sustainability, 13(24), 13646.
Kouhizadeh, M., Saberi, S., & Sarkis, J. (2021) âBlockchain technology and the sustainable supply chain: Theoretically exploring adoption barriersâ, International Journal of Production Economics, 231, 107831.
Jermsittiparsert, K., & Srihirun, W. (2019) âRole of ethics in supply chain management: culture as moderatorâ, Humanities & Social Sciences Reviews, 7(3), 736-743.
Villena, V. H., & Gioia, D. A. (2020) âA more sustainable supply chainâ, Harvard Business Review, 98(2), 84-93.
Villena, V. H., Wilhelm, M., & Xiao, C. Y. (2021) âUntangling drivers for supplier environmental and social responsibility: An investigation in Philips Lighting’s Chinese supply chainâ, Journal of Operations Management, 67(4), 476-510.